15 Mar 2024 15:18

Ukraine's fuel import from Poland by trucks more than halved since blockade begins - experts

MOSCOW. March 15 (Interfax) - The Polish-Ukrainian border blocking has cut fuel imports from Poland by trucks from 70,000 to 30,000 tonnes per month, A-95 consulting group co-founder Artyov Kuyun said in an expert review at the Center for Economic Strategy on March 14, as reported by Ukrainian media.

Most of the fuel imports have moved from the Polish border to the Romanian border since November 2023, largely due to the changed supplier, rather than rerouting of cargo from Poland, Kuyun said.

Fuel that crosses the border in a tank truck can reach consumers at a gas station in four or five days, while the delivery by rail can take several weeks, he said.

"However, traders have now adapted, supplies are stable, and even liquefied gas has survived the new blockade without problems," Kuyun said.

The blockade and the forced change of logistics have a significant impact on the fuel market operation yet traders keep upgrading and improving logistics and have alternate options, he said.

According to Kuyun, fuel consumption decreased by 20% in Ukraine in January-February 2024, compared to the respective period of 2023.

A reason behind the market decline in the first two months of the year is the lack of growth in the solvency of the population, he said.

Imports met 83% of the fuel market demand in January-February, Kuyun said. "This is a lot, as we understand. This makes imports the cornerstone of our market," he said.

According to A-95, overall fuel consumption decreased by 20% from 2021 to 2023.

"It fell, but remained quite significant. Based on the results of 2023, we consumed an average of 850,000 tonnes of fuel per month. This is 6% more than, for example, in 2017. This is a huge volume that creates a significant burden on logistics system of the country and its highways," Kuyun said.

As of March 14, 2024, the retail price for A-95 gasoline averaged 52.04 hryvni per liter, alongside 52.44 hryvni per liter of diesel fuel, and 27.91 hryvni per liter of fuel gas, A-95 said.